The Florida state pension fund has made a bold move to align with US President-elect Donald Trump’s vision for a strategic Bitcoin reserve.
Florida state officials announced that the pension fund will invest $1.85 billion in member contributions into Bitcoin in order to diversify its investment portfolio.
Bitcoin Exposure
The head of the Florida Blockchain Business Association (FBBA) announced that $1.85 billion from Florida’s pension fund is being considered for investment in Bitcoin, a move supported by state leaders.
FBBA President Samuel Armes said in an article that Florida will launch a “strategic Bitcoin reserve,” adding that the state has a high chance of creating the BTC reserve in the first quarter of next year.
Armes believes that Bitcoin investment would come about thanks to pro-Bitcoin leaders such as Florida House Speaker Danny Perez and Governor Ron DeSantis, saying Perez “understands the technology very well” while DeSantis is among the most pro. -Bitcoin Governors in the United States.
Florida To Launch Strategic Bitcoin Reserve, And Here’s How We’ll Do It 👇
Florida has a very good chance of creating a strategic Bitcoin reserve during this session, which will begin in the first quarter of 2025.
Here’s what you need to know:
Florida House Speaker Danny… pic.twitter.com/JJRNU1V7ZI
– Samuel Armes (@samuelarmes) December 3, 2024
Pension fund goes crypto
Armes suggested that one way to build a Bitcoin reserve in Florida is to allow the state’s pension fund to invest $1.85 billion in Bitcoin.
“Leverage our $185.7 billion pension fund to allocate a small percentage to Bitcoin as a hedge against inflation,” Armes said in an article.
The FBBA official explained that this would not be the first time that Florida has invested in digital assets using the pension fund, as the state has previously invested in Bitcoin and crypto-related assets through this fund .
He explained that the fourth largest pension fund in the United States can use 1% of its fund to establish a Bitcoin reserve, providing the retirement savings plan with an opportunity to diversify and gain exposure to the growing cryptocurrency market.
“The repo allocates its funds to hedge funds, and some of these hedge funds have purchased various stocks in the Bitcoin space (miners, MSTR, Coinbase for example) while also purchasing liquid tokens,” he added .
$800 million in crypto
Florida is not new to digital assets as it already has $800 million in crypto investments.
Florida Chief Financial Officer Jimmy Patronis has urged other pension funds to try investing their money in Bitcoin, adding the premier cryptocurrency to their state’s investment portfolio.
“Crypto isn’t going anywhere. It will continue to grow and we would be foolish not to exploit its opportunities there,” Patronis said in emphasizing the need to prepare for the growth of digital currencies.
However, some critics have expressed concerns about the state’s investment plans in Bitcoin, warning of the crypto’s volatility.
Charles Bobrinskoy of Ariel Investments argued that Bitcoin is a “dynamic bubble,” adding that it has an “unstable price” and has no real value.
Meanwhile, state officials have defended the move, saying Bitcoin is a “good long-term investment” and a better option for guarding against traditional financial risks.
Featured image from Business Standard, chart from TradingView
